Gustav Oil & Gas Impact

The eye of Hurricane Gustav passed just 20 miles from the Louisiana port where huge amounts of gas and oil are piped to refineries.

 Mary Snow is following what impact Gustav could have on gas prices.

AN UNKNOWN IN GUSTAV'S WAKE: HOW OIL RIGS, PIPELINES AND REFINERIES IN THE GULF WEATHERED THE STORM.

IT COULD TAKE DAYS TO DETERMINE WHETHER THERE WAS ANY DAMAGE. THE GULF PRODUCES MORE OIL AND NATURAL GAS THAN ANYWHERE ELSE IN THE COUNTRY.

THERE ARE 4 THOUSAND DRILLING PLATFORMS HERE ALONE. THE POTENTIAL FOR ANY DISRUPTION TO PRODUCTION USUALLY SENDS PRICES HIGHER. THIS TIME, ENERGY TRADERS ARE SCRATCHING THEIR HEADS.

 "But a very odd thing is happening to prices right now. Everyone thought this was going to drive prices higher. But we've been moving lower."

BACK IN 2005, HURRICANES KATRINA AND RITA DEALT A MAJOR BLOW TO OIL AND GAS FACILITIES. WITHIN ONE WEEK AFTER KATRINA HIT....GASOLINE PRICES SPIKED BY 45 CENTS.

THIS TIME AROUND, ANALYSTS CAUTION IT'S STILL TOO EARLY TO KNOW WHETHER GUSTAV WILL CAUSE PRICES AT THE PUMP TO GO UP..SINCE THE DAMAGE TO PRODUCTION IS STILL UNCLEAR.

BUT SOME TRADERS DON"T EXPECT MUCH OF AN IMPACT ON GASOLINE PRICES ..SAYING THEY HAD ALREADY BEEN FALLING, DEMAND IS DECLINING AND LOOK AT THE CALENDAR.

"Today, is Labor Day, so tomorrow that means gasoline demand which has been weak all summer long is about to get even weaker."

ENERGY COMPANIES SAY IT'LL TAKE A FEW DAYS UNTIL WORKERS CAN SAFELY INSPECT OIL RIGS AND REFINERIES TO DETERMINE IF THERE IS DAMAGE.

BUT A NUMBER OF ANALYSTS WE SPOKE WITH SAY THEY ACTUALLY EXPECT GASOLINE PRICES TO TREND LOWER. MARY SNOW, CNN, CHICAGO.